Several chart- and market-technical factors speak for a pause now in the flight from the euro into the dollar or yen. First, there is the still overbought condition of the dollar, calling for at least some consolidation and, second, the exaggeration of the present market over the now upturning longer-term moving averages. Add to this the open short interest in the euro, doubling recently to a long-term high figure, and you have a picture too extreme to be consistent right now. The sovereign debt problems of the Eurozone will remain, becoming acute again soon, there is little doubt about that. But for short-term trading, especially for intraday positions this week, we prefer to trade both sides of expected bandwidths in the major pairs.
Below is our list for favorable trading points today. For the moment, we assess the volatility to remain relatively low but still offering some intraday chances at specific pivots. As to the data front, Germany this morning published further expanding Trade Balance and Current Account surpluses for December. Note the U.S. December Wholesale Inventories MoM at 16:00 CET.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair regained more of its lost territory in early European trading, with the market right now at 1.3730. We see the upside potential today limited near 1.3750 and a test of the downside 1.3650 support.
GBP / USD
The weak stance of the pound against the dollar remained in the European morning session, with the market at the current level of 1.5580. We expect a sideways trend to set in today, with moves between the 1.5640 and 1.5550 marks.
USD / CHF
The dollar is correcting further downwards against the Swiss franc in this European morning session, priced right now at 1.0685. We see this move fading out soon today, followed by an upswing towards the 1.0740 level.
USD / JPY
Against the yen, the dollar continues its uptrend (started in Asian trading) in the European morning, currently trading at 89.70. We see selling coming into the market at levels around 89.80 which could lead down to the 89.20 support.
Below is our list for favorable trading points today. For the moment, we assess the volatility to remain relatively low but still offering some intraday chances at specific pivots. As to the data front, Germany this morning published further expanding Trade Balance and Current Account surpluses for December. Note the U.S. December Wholesale Inventories MoM at 16:00 CET.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair regained more of its lost territory in early European trading, with the market right now at 1.3730. We see the upside potential today limited near 1.3750 and a test of the downside 1.3650 support.
GBP / USD
The weak stance of the pound against the dollar remained in the European morning session, with the market at the current level of 1.5580. We expect a sideways trend to set in today, with moves between the 1.5640 and 1.5550 marks.
USD / CHF
The dollar is correcting further downwards against the Swiss franc in this European morning session, priced right now at 1.0685. We see this move fading out soon today, followed by an upswing towards the 1.0740 level.
USD / JPY
Against the yen, the dollar continues its uptrend (started in Asian trading) in the European morning, currently trading at 89.70. We see selling coming into the market at levels around 89.80 which could lead down to the 89.20 support.
